Americans - IRA Contributions Can Be Made Until Tax Filing Deadline
Haven’t Filed Last Year’s Tax Return
If you want to make contributions to an Individual Retirement Arrangement (IRA), or if you’ve put in less than the maximum allowed, you can do so until April 15, of the following year. You can contribute to either a traditional or Roth IRA until the April 15, the due date for filing your tax return, not including extensions.
If your contribution is made between January 1 and April 15, be sure to tell the IRA trustee that the contribution is for a previous tax year. Otherwise, the trustee may report the contribution as being for the current year, when they get your funds.
Generally, you can contribute up to $4,000 of your earnings for 2005 or up to $4,500 if you are age 50 or older in 2005. You can fund a traditional IRA, a Roth IRA (if you qualify), or both, but your total contributions cannot be more than these amounts.
You may be able to take a tax deduction for the contributions to a traditional IRA, depending on whether you — or your spouse, if filing jointly — are covered by an employer’s pension plan and how much total income you have. You cannot deduct Roth IRA contributions, but the earnings on a Roth IRA may be tax-free if you meet the conditions for a qualified distribution.
You can file your tax return claiming a traditional IRA deduction before the contribution is actually made. However, the contribution must be made by the due date of your return, not including extensions. If you report a contribution to a traditional IRA on your return, but fail to contribute by the deadline, you must file an amended tax return by using Form 1040X, Amended U.S. Individual Income Tax Return. You must add the amount you deducted to your income on the amended return and pay the additional tax accordingly.
